Method and system for online sales and purchases

ABSTRACT

Internet-based commercial network connects multiple qualified participant buyers and sellers. Items are made available for defined periods of time, referred to as an event ( 139 ). Event terms and conditions include item types, price, quantity, volume or units, discount, shipping terms ( 138 ). Reiterative offer and counteroffers permit negotiation of terms for an event. Participants may view anonymous competitive quotes for comparison and analysis. Pooled purchases and auctions are envisioned. Participants may create web presences and are subject to restrictions on access ( 141 ) and purchase ( 142 ) authority. Central system maintains participant data.

CROSS REFERENCE TO RELATED APPLICATION

This application is a division of U.S. application Ser. No. 10/399,196filed Apr. 1, 2005 and naming as inventors Richard J. Solar, Oren L.Davis, Mirko Predosin, Diane L. Slonaker and Richard A. Russell andhaving the same title as this application, which was the U.S. Nationalstage of, and claimed priority from, an international application No.PCT/US01/32180, filed Oct. 10, 2001, naming the above five inventors,and having the same title as this invention, that internationalapplication claimed priority from the U.S. provisional application,identically entitled, No. 60/239,141, filed Oct. 10, 2000, naming asinventors Oren L. Davis, Mirko Predosin, Diane L. Slonaker and RichardA. Russell. Priority from each of the above-identified earlier-filedapplications is hereby claimed. Each of the above-identified,earlier-filed applications is hereby incorporated by reference.

FIELD OF THE INVENTION

This invention relates to a system, software and method for computerizedprocurement, sales, or contract formation using a computer network, andmore particularly to a system, software and method using the internet toestablish multi-item procurement, sale or contracting events.

BACKGROUND OF THE INVENTION

For any product that can be described and priced per item, per weight orby how it is packaged, procurement has often been inefficient and timeconsuming for purchasers and sellers alike. This applies to retailgrocery and healthcare businesses and any that regularly purchase avariety of items from various sources. Additionally, past procurementmethods have not been certain to bring purchasers the best purchaseterms available, or to assure sellers a reasonable opportunity to fairlycompete.

Typically, in a retail business, sellers would need to schedule ameeting with a purchasing agent of a large retailer, travel to thescheduled meeting, and make offers on products with little or noknowledge of what competitive offer had been or would be made by othersellers. This practice has been inefficient, time consuming and notcompetitive. Sellers have been unable to react to competitive offers andpurchasers have been denied the benefit of such reactive pricing.

A number of websites on the worldwide web offer auctions and reverseauctions. These permit buyers or sellers to make offers or “quote” onvarious posted items. The quoting often is set to close at a particulartime, and a feature has been offered whereby quoting may be extended ifa quote is received within an extension threshold time approaching thescheduled close.

These sites are not tailored to a particular business's procurementpractices, however. They do not afford the opportunity for a businesspurchaser to schedule an event among recognized, qualified businesssuppliers, during which many items required by the business purchaserare posted by that purchaser, and suppliers are unable to quote againstone another, not just on price, but on other terms important to both theselling and purchasing parties. Neither do prior sites allow forconfirming a purchasing or selling activity to the business practices ofthe relevant business. In addition prior sites have not allowed foractual negotiation of contract terms of a negotiated contract.

SUMMARY OF THE INVENTION

In accordance with this invention, a system, software and method forcomputer-assisted procurement or sales of products are provided in whichan interne website allows for the listing of a multiplicity of productsto be sold or purchased by a seller or a purchaser. An “event” isestablished at which qualified buyers or sellers can visit the websiteto offer terms for the sale or purchase of the products listed there.The establishment of such an event includes making the website availablefor the posting of offers (“quotes”) during an identified time period.In a purchasing event, qualified sellers are invited to offer terms ofsale by posting those terms at the website in association with the itemssought to be purchased, and doing so during the identified time periodfor the event. In a selling event buyers are similarly invited to thewebsite to offer to purchase items listed there. In a negotiated event,negotiable purchase contract terms are posted for negotiation betweenbuyer and seller. In a competitive branded product event, similarproducts of differing brands may be sought by a buyer, and sellers'proposals in response are objectively compared despite differingproposed terms.

Buying and Selling Events

The system by which the invention operates includes one or more servers,the internet-connected computers of buyers and sellers, the interneequipped computer of the company that supports the system and maintainsthe website and the programming of each that establishes theinteractions of the buyers, sellers and company with the website andeach other.

During the course of the purchasing event, software by which the systemoperates provides that offers by each qualified seller participating inthe event are made known on the website to the other participatingqualified sellers. The terms offered by the qualified sellers may be notjust price, but such further important considerations as quantitydiscounts, contributed advertising dollars, shipping terms, paymentterms, quality, scheduling of deliveries, and such other terms andconditions as may be commonly a part of a purchase contract in theparticular business or industry.

The website can offer the qualified sellers the opportunity to quote oneach item listed. It is able to provide for each seller to convey theadditional, non-price terms with respect to each product listed or withrespect to the entirety of the products sought to be purchased. Inaddition, the website shows a total of the prices offered by each sellerand can indicate by a reduction the value of the non-price terms offerby a seller. The purchaser can buy from a qualified seller with respectto individual items or can purchase from a single seller the entirety ofthe items posted.

Typically, the event is scheduled in advance for a fixed period of time,but if a quote by a seller is made within the extension threshold nearto the close of the event, the event is extended to allow activeparticipants placing quotes to respond. Although the examples given hererelate primarily to a purchasing event (e.g. a reverse auction), theevent may also be a selling event (a traditional auction).

Purchasing events may be replenishment events. These are regularlyscheduled events at which previously approved sellers quote on itemsdesignated by the purchaser from a list of regularly purchased items.

Purchasing events may also be price list events. These are replenishmentevents of a different kind. A list of regularly purchased products ismaintained open for quotes by approved sellers. Buyers, then, have theopportunity to purchase at what they perceive as the best quote for aparticular item, as needed.

Further, purchasing events may be spot buys. This event is opened tocover a pressing need for a particular item or items. That may arisefrom a shortage occurring because, for example, a retailer-buyer has runa sale on the particular item, because the retailer-seller wishes toextend a particularly successful promotion, or because a retailer-buyerhas scheduled an ad for a particular item. The immediate need may beheightened by the buyer's inability to purchase the desired item fromthe buyer's usual suppliers. The spot buy event enables a spur of themoment buy to cover a real or anticipated shortage.

Where the event is a purchasing event, the event may be of severalkinds. One is a market price event where the products sought to hepurchased have a “going price” against which the sellers quote. In thiskind of event, the quote may be plus or minus some variance from themarket price. In that case, the system is able to convert this to atotal price mathematically and display that to the purchaser. The secondkind of event does not have a market price with respect to the itemssought to be purchased, but rather the sellers quote the actual priceintended on an item by item basis. In a preferred embodiment the systemalso provides certain improvements over the reverse auction that assistsa buyer in the procurement of general merchandise items, large capitalitems or branded products. One such improvement aids the purchaser inevaluating the cost of money over time. Another improvement helps levelthe decision making process when purchasing similar products that aredifferent brands.

The system is robust in the sense that it can accommodate variance inthe unit of measure posted by a purchaser and the unit of measure onwhich a quote is made. For example, the desired purchase may be postedin cases and the responsive quote may be in pounds. The system can beequipped with conversion factors that will accommodate this, making thecalculation of the total value of the quote so that the purchaser canreadily compare quotes.

In the purchasing event, the quotes of each seller may be made known tothe other sellers participating in the event, while the identities arenot. Often, as with retail groceries, the events may be constrained torelated foodstuffs or goods, e.g. meat, produce, paper products.

In a particular embodiment, the purchaser is able to increase ordecrease the volume of goods being sought manually or have the systemraise the volume base upon certain price points that are configuredbefore the event is run by the purchaser. The automated feature iscalled proxy volumes. This may result, for example, from a seller havingoffered an attractive volume discount as a non-price term. In responseto an increase or decrease in volume being sought by the purchaser, anextension of the event is provided to give sellers an opportunity torespond.

Participating sellers may increase their price offers or quote within aspecified period of time as well as decrease them. This is to giveinexperienced sellers the reassurance that it is possible to correct anerror in pricing.

The integrity of the scheduled event is maintained by validationprocesses. Buyers and sellers must register and login at the website. Apublicly available registration page or pages is afforded. There theregistrant acquires the login number (or word) and password. At thelogin, the registrant enters his or her login number and password at alogin page. These are checked for validity, and if valid, theregistrant's account is cross-checked against a list of disabledaccounts. If the account has not been disabled, a cookie is placed onthe registrant's machine. With the cookie a file is provided on theregistrant's machine. The file provided contains the classification ofthe registrant, i.e. buyer, seller or power buyer, qualifications forparticular events and other information particular to the registrant.The cookie identifies the registrant by a code unique to thatregistrant, and it also identifies the time zone of the registrant.Thereafter, all times will be shown to the registrant in the applicabletime for that registrant's time zone.

From this point, the registrant can move to the registrant's home page.Based upon the role of the registrant, there are three different homepages. If the registrant is an “administrator” of the system (e.g. oneemployed by the company operating the system) then that registrant getsa listing of events that the registrant is administering. If theregistrant is a “power buyer” of the system then that registrant isempowered to administer (or “host”) his or her own events and gets alisting of events that they are hosting. If the registrant is a buyer orseller in the system (i.e. participants that do not administer events)then that registrant gets a listing of events that they may participatein. Only an administrator from the administrator's home page can updateany user or company profile, add or update products or productcategories. Administrators can also update or create events, see eventsthat have not yet run, see events that are pending award, see eventsthat have not yet been scheduled, see events for contracts that arecoming due and see a full calendar of events to be run on the system.From their home pages power buyers have only the ability to updateevents that they created or create events for their companies, see theirevents that have not yet run, see their events that are pending award,see their events that have not yet been scheduled, see their events forcontracts that are coming due, and see a full calendar of events thatare associated with their company. From their home page buyers andsellers have access to events in which they have been invited toparticipate or which are being administered for them by anadministrator.

The participation in an event by a buyer or seller is initiated byeither an administrator or power buyer when creating an event from anevent setup page. From this page the user can send invitations toprospective participants, send “thank you for participation” messages or“thank you and award notification” via email or fax. Once an invitationis sent to prospective participants, they can either click on a link inthe email or logon to the website and from their home pages enter theprogram details page for that event. The program details page summarizesall details related to the event and allows a participant to accept ordecline participation in the event. The details will include: all itemsand item descriptions, additional funds and/or terms, samples, and allevent options chosen by the host purchaser of the event. If one accepts,then one will continue to have access to the event. If one declines theevent, then the event will be removed from one's home page.

With each new page that a registrant moves to, two types ofauthentication take place. First, user authentication verifies that thecurrent user is logged in and validated. Second, event participantauthentication verifies that the current user is a valid eventparticipant and that he or she has the necessary permissions to thevarious event pages such as “quote view page,” “quote/note pages,” or“funds/terms pages.” These verifications are made checking the contentof the cookie left during login. If no cookie exists, the user isentitled only to publicly accessible pages of the website. These includethe homepage, registration page and login page.

There are several varying degrees of access login depending on therole(s) associated with the user. In addition to the buyers, sellers,power buyers and administrators employed by the company that maintainsthe system and provides the website, these include shareholders of thecompany and brokers empowered to submit quotes for others. During userauthentication, if the user has logged in previously and has a cookie,the users id (GUID) and time zone is determined. If the session is stillopen, i.e. timeout has not occurred, then the user is allowed access toany requested page for which that user is qualified based upon theuser's GUID.

Event authentication ensues if the user requests access to an event.Information concerning the event is retrieved, and it is determinedwhether the event has been disabled, i.e. cancelled or postponed. Ifnot, it is determined whether the user is authorized for the event. Ifthe user has been authorized, it is determined whether the user has beendisabled, and if that is not the case, whether the user has accepted aninvitation to the event (RSVP'd). User disablement may occur by virtueof a user failing to after a quote over a determined period or if theuser's quote is not within a specified amount above or below thethen-best quote (“a tolerance”). If a user has RSVP'd, the quote viewpage is displayed to the user who may then submit a quote. The quoteview page shown to a qualified user lists the items that the buyer seeksto purchase. Terms required by the buyer may be posted. In the case of amarket price type of event, the market price is given. Shippinglocations may also appear if the buyer desires quotes to be deliveredpricing.

The internal administrator, mentioned above, is permitted access to allpages and all events. On the other hand, a power buyer may change anydetail of the particular event for which he or she is responsible. Bycomparison, buyers for whom a reverse auction event is administered byan administrator are permitted only to see events for which they areregistered. Like power buyers, these buyers have the ability todetermine which participants will be allowed to make offers. They canbring up a list of sellers who have RSVP'd and signal their acceptanceof particular sellers.

A quote view page is regularly updated as new quotes are made, thelowest quote in each category may be highlighted. With each quote,authentication again occurs. It is determined whether the participant isqualified or has been disabled. It is further determined whether theevent is still open. A check is made to see if the item has associatedwith it a reserve price, which is to say, a minimum quote that will beaccepted in the case of an auction and a maximum quote in the case of areverse auction. The system also determines whether the event has beenestablished as a regular or a reverse auction. It is further determinedwhether the particular item being quote upon has a quote increment, anamount by which a quote must vary from a previous low or high quotedepending on the type of auction. In the case where there is a quoteincrement, it is determined whether the quote is an even multiple ofthat increment. If so, in the case of a market priced item, conversionis made to indicate the market price plus the quote (the total price).

Other features of the system include determination of the extended priceat a particular quote, quantity or “unit of measure” conversions aspreviously mentioned, an indication of the time remaining to the closeof an event, five different levels of transparency and many otherfeatures described below. By “levels of transparency” is meant the setup of a page to show more or less information such as “full view” ofquotes and quoters, low quote without color ranking, low quote only,“blind” (without competitive information), etc. When the system andmethod is used for traditional auctions, rather than reverse auctions, aseller is the event originator and administrator. A participant can be aseller in one instance and a buyer in another. This is useful when aparticipant who is ordinarily a purchaser has overstocked an item.

The system and method is conducive to the establishment of such businessrules as are already in place in a particular trade, or that maydesirably be implemented for better proceedings. For example, a quotewithin a predetermined “threshold” time before the time set for theclose of quoting may result in an extension to give active participantsplacing quotes a chance to respond. In this situation, further rules canbe implemented that participants placing quotes who have not placed aquote or have not placed n quote within a specified tolerance for anitem a prior to a configurable time period are disabled from furtherparticipation in the event.

Upon the closing of an event a host buyer or administrator can choosewhich sellers will be chosen to provide the specified item from theevent from the view award page. Subsequent to the awarding business thehost buyer or administrator can adjust item volumes or pricing and addin additional purchase information (i.e. PO number, comments, etc. . . .). Once the award information is completed the host buyer oradministrator has the ability to send system generated notification tothe sellers that were awarded business from the event. The notificationcan be sent via email or fax. If it is sent via email the seller canthen click on a link in the email which will allow the seller to logonand go to the participant award page. On the participant award page theseller can view the buyer awarded information, enter their invoicenumber, sales order number, update volumes and accept the award online.The system will then send a message to the host buyer and administratornotifying them of the completion of the award process.

Negotiated Events

In a negotiated event the user places a contract out for responsivequotes by setting out proposed terms or “parameters.” Items to be boughtor sold are identified and invitations are sent to desired participants.

An invited participant gains admittance to the process by accepting,first, the event details and then accepting the initiating user's termsand conditions. Using the website page provided, an invited participantthen submits his or her proposed terms, pricing, and contributed fundssuch as advertising contribution or volume discounts.

The initiating user then is provided an analysis web page at which thevarious proposals he or she has received can be viewed side-by-side forcomparison. Proposed contributed funds can be categorized and comparedby category. Various contingencies (“what if scenarios”) may be run.Negotiation with a responding user is enabled. If desired that user canbe shown the proposals of others or just the contributed funds ofothers. The initiating user allows the responding user to open itsproposal for changes, and a contract may then be awarded.

Competitive Branded Products Events

In one preferred embodiment, the system and method of the inventionfacilitates a buyer's choice between competitive branded products. Thisis done by affording a basis for comparing supplier's proposals. Anobjective comparison is afforded even though such terms as price,quantity, and additional funds may differ among the proposals. Thesystem compares the gross margin that would result from a seller'sproposal with the gross margin that would be achieved under the buyer'sproposed terms. Dollar and percentage differences are shown. Acomparison between sellers proposals is made based on how each proposaldiffers from each of the buyer's proposals.

The systems and methods provided in each of the above-described eventsbenefit the buyer by:

a. Enhancing buyer-supplier communication;

b. Providing a more time-efficient negotiation process;

c. Assisting in making quicker, better-informed decisions; and

d. Showing real-time market information.

The same systems and methods benefit the supplier by:

a. Providing low cost, high volume sales opportunities;

b. Providing an opportunity for a broader customer sales base;

c. Through transparency, exposing partial or full visibility ofcompetitors' responses, providing important market information; and

d. Shortening negotiation processes and quicker purchasing decisions.

The above and further objects and advantages of the invention will bebetter understood from the following detailed description of a preferredembodiment taken in consideration with the accompanying drawings.

DESCRIPTION OF DRAWINGS

FIG. 1 is a flowchart representing a login validation routine;

FIG. 2A is an illustration of an event listings page for a participatingseller;

FIG. 2B is an illustration of an event listings page for anadministrator;

FIG. 2C is an illustration of an event listings page for a power buyer;

FIG. 3 is an illustration of a program details page for a participatingseller;

FIG. 4 is a flowchart representing a user authentication routine;

FIG. 5 is a flowchart representing an event authentication routine;

FIG. 6A is an illustration of an administrator, buyer or power buyer'squote view page before an event begins;

FIG. 6B is an illustration of a participating seller's quote view page,before an event begins;

FIG. 6C is an illustration of a quote/note page in full view;

FIG. 6D is an illustration of a further participating seller'ssubsequent quote view page for the same event as FIGS. 6A-6C after theevent has begun with a low quote only view;

FIG. 6E is an illustration of a further participating seller's quoteview page for the same event as FIGS. 6A-6D after the event has begun,and with a blind with low quote identifier view;

FIG. 6F is an illustration of a participating seller's quote view pagefor the same event as FIG. 6A-6E after the event has begun, and with ablind w/out low quote identifier view;

FIG. 6G is an illustration of a participating seller's quote view pagefor the same event as FIG. 6A-6F after the event has begun, and with aranking view;

FIG. 6H is an illustration of a quote funds/terms page for the event ofFIGS. 6A-6G;

FIG. 7 is an illustration of an administrator, buyer or power buyer'squote view page for the same event as FIGS. 6A-6H after the event hasbegun;

FIG. 5A is an illustration of a further, administrator, buyer or powerbuyer's quote view page for the same event as FIGS. 6A-7, during anextension;

FIG. 8B is an illustration of a further participating seller's quoteview page for the same event as FIGS. 6A-8A, during an extension;

FIG. 9A is an illustration of an administrator, buyer or power buyer'squote view page for the same event as FIGS. 6A-8 during the reviewperiod;

FIG. 9B is an illustration of a further responding seller's quote viewpage for the same event as FIGS. 6A-9A, during the review period;

FIG. 10 is an illustration of a buyer's final quote view page for thesame event of FIGS. 6-9 after the close of the event;

FIG. 10A is an illustration the view award page for the event of FIGS.6-10;

FIG. 10B is an illustration the award default page for the event ofFIGS. 6-10A;

FIG. 10C is an illustration the seller award page for the event of FIGS.6-10B;

FIG. 11A is a flowchart of the award of business process;

FIGS. 11B & 11C are flowcharts representing an item quoting routine;

FIG. 12 is a flowchart representing an item quotes trigger routine;

FIG. 13 is a flowchart representing an event items trigger routine;

FIG. 14 is a flowchart representing an event extension routine;

FIG. 15 is a flowchart representing a funds/terms quoting routine;

FIG. 16 is an illustration of an administrator, buyer or power buyer'squote view page for a market price event similar to the event of FIGS.6A-10B;

FIG. 17 is an illustration of a participating seller's quote view pagefor the market price event of FIG. 16;

FIG. 18 is a guide to the relationship of FIGS. 18A-F;

FIGS. 18A-F are a diagrammatic illustration of a data model of a systemaccording to the invention:

FIG. 19 is a flowchart of a first, Initializing Event, component of anegotiated event;

FIG. 19A is a flowchart of a second, Create Proposal, component of thenegotiated event of FIG. 19;

FIG. 19B is a flowchart of a third, Analyze/Negotiate Proposals,component of the negotiated event of FIGS. 19 and 19A;

FIG. 20 is an illustration of the quote view page for a negotiatedevent;

FIG. 21 is an illustration of the quote view page for a branded productevent;

FIG. 21A is an illustration of a administrator, buyer or power buyer'squote view page for a competitive brand event;

FIG. 21B is an illustration of a seller's quote view page for acompetitive brand event;

FIG. 22 is an illustration of the event setup page; and

FIG. 23 is an illustration of the event setup page with negotiated eventoptions.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENT

Initially, one desiring to participate in an event according to thepresent invention is asked to complete a registration page availablefrom the systems website. Typical information requested may include alogin id (this may be assigned), a desired password, name, title,organization, address (actual and email), time zone, billing address,phone number(s), fax number(s), and categories. A listing of categoriesmay characteristically be made available for the user's assistance.Default settings are made, unless overridden

Following registration, and after a participant has been given a loginid and password, the user is shown to a simple login page (not shown)and proceeds as indicated at 101 in FIG. 1. Once the user's id andpassword have been entered at the login page, the validity of these ischecked at 103 and at 104 (FIG. 1), the determination is made whetherthe user's account has been disabled. If either the id or password isinvalid, or if in fact, the account has been disabled, then an error isdisplayed to the user as indicated at 105.

On the other hand, if the id and password have been determined to bevalid and the account is not disabled, then the server with which theuser is in communication generates a cookie which is placed on theuser's machine. This constitutes a global unique identifier (GUID), a128-bit number unique to this particular user, and which identifies theuser as well as the user's time zone offset and time zone abbreviation.The time zone offset and time zone abbreviation are used subsequently,so that in all further communications the user's time zone time is thatwhich appears on all subsequent pages. At this time a file isestablished in the user's machine. Here the user's classification asadministrator, buyer, seller or power buyer is recorded along with otherauthorizations of the user as may pertain. Cookie placement and fileestablishment of this kind are well understood procedures.

The user then proceeds to their home page 108. This page, as illustratedin FIG. 3, lists at 109 all of the upcoming events for which this useris qualified. (In the exemplary FIG. 3, only one event, a trainingevent, appears.) The beginning and ending dates and times for each eventare shown and an event status column is entitled “Status” in FIG. 3.Only upcoming events and events that have an end date within the past 14days are displayed on the buyer/seller home page 108 of FIG. 3. Internaladministrators can view all events on their home pages as shown in FIG.3A at 108′. Event power buyers see on their home pages events they arehosting or events for their company as illustrated at 108″ of FIG. 3B.If the event is not a regularly occurring replenishment event, prior toan event starting, the event organizer, whether a power buyer or anadministrator, can invite sellers to participate in an event. Eventparticipants, i.e., responding buyers or sellers, will receive anotification to respond to the invite by reviewing the program detailsof the event shown in FIG. 3D. They are not allowed into the actualevent until they have responded to the invite and accepted it on theprogram details page, FIG. 3D.

If the event is a replenishment event that is repeated at regularlyscheduled times, then the responding sellers will be pre selected andwill be able to participate ill each replenishment event as it arises.

As seen in FIG. 3D, the exemplary event here is an olive-purchasingevent. The program details of the page shown in FIG. 3D includedescriptions and packaging sizes of the items sought, event start andstop times, and a listing of event details set by a power buyer or by anadministrator for a buyer as described more fully below in connectionwith FIGS. 22 and 23.

Returning to the flowchart of FIG. 1, when a supplier chooses an eventfrom the events listing page at 108 the determination is made at 110whether they have accepted the invitation to participate. If the answeris yes, the user is permitted access to the event at 114. Likewise, ifat 110, it is determined that the user does not need to accept theinvitation, for example because such a response has already been made inthe case of replenishments event types, then the user is moved at 114 tothe event.

At every new page, authentication takes place. Additionally, event levelauthentication takes place for pages that display event information.User authentication is a general authentication, whereby the user isrecognized as a qualified user of the website. Event participation ismore specific and determines that the user is qualified to participatein the particular event.

As flowcharted at FIG. 4, user authentication proceeds as follows. Fromthe user's homepage 108, the user requests access to an event. At 118 itis determined that this is a valid user. At 119 the user's profile ischecked for completeness. If not complete, the user is directed to apage 120 where the profile can be completed. At 121 the cookie on theuser's computer is checked, the GUID is retrieved, as are timezonedetails. A determination is made at 122 whether the requested event isstill open, and if not, the user is returned to the login page at 123.If the event is open, the user's classification is determined using theGUID at 124. The role of the user is determined, and if appropriate, theuser is afforded access to the event by providing the user with theappropriate page at 125.

If initially, the user is not valid at 118, then it is determinedwhether the user is seeking access to the server homepage or theregistration or login pages, each readily available to the public. Ifthat is the case, then the user is passed to that page that the user hasrequested. However, if the user is seeking another page, then the useris returned to the login page as indicated at 123.

Event participant authentication verifies that the current user is avalid event participant, and that the user has the necessary permissionsto read various event pages. This authentication proceeds as indicatedin FIG. 5. Where an event page request by the user is detected at 135,but there is no event id or an erroneous id is the request detected at135, an error display is made at 137. These can typically include thestarting time, the ending time, the allowable terms, etc. If at 135, avalid event id is detected, at 138 event information is retrieved. Next,a determination is made at 139 whether the event has been disabled. Ifit has been, again, an error is displayed to the user as indicated at137. If the event has not been disabled, a determination is made at 141whether the user is authorized for this event. If the user is notauthorized, an error is displayed at 137, but if the user is authorized,then at 142 the determination is made whether the user has beendisabled. Again, if this is the case, an error is displayed at 137, butif the user has not been disabled, a further determination is made at143 whether the user has responded to an invitation to participate. Ifthe user has not so responded the user is denied access and may bereturned to his or her homepage. If at 143, it is determined that theuser has accepted the invitation, then the event page being requested isprovided to the user as indicated at 147.

FIG. 6A is a typical participating sellers quote view page. This exampleis an olive event such as might be established by a retail grocer. Thisevent is not yet open. The header frame for the quote view page providesnavigation and general event information like the time remaining in theevent. The header automatically refreshes every ten seconds. Each timeit refreshes, it checks to see if the quote view page has been refreshedsince the last quote was submitted. If it has not, then the page isautomatically refreshed when the header is done loading. This way theuser will only, at worst, be given data that is ten seconds old. At 150is seen the date and time of opening of the event, shown in the user'slocal time. At 152, the time remaining until opening of the event isseen. At 153 are the items that the grocer (buyer) wants to purchase.Each description line 153 includes a description of the product and adescription of the number and size of containers per case, e.g., “DWSpanish Olives Thrown Stuffed Manz,” packed 12 jars of 5.75 ounces eachper case. At 154 appears the number of cases sought. Because this is nota market price event, no market prices appear. However, at 155 “CurrentPrice” appears. This is the price at which the items are available onthe market at the time for the purchaser's comparison with the quotedprices during the event. Five sellers, identified by name, areparticipating as seen by the columns 158 headed with those designations.

Turning to FIG. 6B, the participating seller's quote view page of a notyet open event is shown. Again at 150, date and time of event opening isshown. Competing sellers are identified only as S1, S2, S3 and S4. Shownin the columns having the headings S1, S2, S3 and S4 will appear thequotes submitted by those four sellers.

FIG. 6C is a seller's quote view page for an open event. The lowestquote for each item is listed and clearly highlighted (in yellow, forexample) at 159 and in the fields of the columns 158. Two quotes by thepresent user are lowest in this example. The sellers S2, S3 and S4 eachhave one low quote indicated at 161. The total of all quotes appears atthe line entitled “Gross” at 163. The additional funds/terms appear atthe line 164 entitled “Additional Funds/Terms”. The overall total,taking into account both the total quotes and any additionalfunds/terms, appears in the line 165 entitled “Net Total.” Additionalfunds/terms may be give-backs of the nature previously discussed, suchas freight, free advertising, quantity discount, etc.

FIG. 6D is a further quote view page. This page has a different level oftransparency from FIG. 6C. Here only the user's quotes, at 160 and thelow quotes at 159 are shown to the user.

FIG. 6E has yet another level of transparency available according tothis preferred embodiment. Here the page is “blind,” providing the useronly the user's own quote at 160 and an indication when the user'squotes are the low quotes by the highlighting in color at 160′.

FIG. 6F illustrates an alternative page. Again the view is blind andhere only the user's quotes appear at 160. No low quotes are indicated.

FIG. 6G illustrates still another alternative page. Again the view isblind, but here user's quotes are shown at 160, with their ranking amongcompetitive sellers at 160″.

An additional funds/terms page of a seller is shown in FIG. 6H. Minimumfunds to be contributed by the seller as set by the purchaser are shownat 1161. The user's quoted fund contribution of $220 is shown at 1162for the upper item. The user has not quoted a fund for the lower item orthe funded quoted was below the minimum and is not shown. Competitiveseller's fund contributions may be shown at column 1163. Quoted termsappear at 1164 for the upper item.

In FIG. 7, a refreshed administrator, buyer or power buyer's quote viewpage for the same olive purchase event as is the subject of the pageshown in FIGS. 6A-6H. It reflects, at 150, that the event is open andrunning and at 152 time remaining in the event. Here the identity of thesellers is visible at column 165, so this page is typical of thataccessible to an administrator, a buyer or a power buyer. Low bids arehighlighted in color at 161. Indicia 162 in the Tee Pee Olives, Inc.column show that the quoting seller has attached a note.

In FIG. 8A an administrator, buyer, power buyer quote view page is shownduring an extension of the same olive purchase event as FIGS. 6A-7. Thatthe event has been extended is indicated at 150. The time remaining inthe extension is shown at 152.

In FIG. 8B shows a seller quote page during an extension as indicated at150. At 152 the time remaining in the extension is shown. Low quotes arehighlighted in color.

In FIG. 9A, the final administrator, buyer, power buyer quote view pagefor the olive purchase event appears. Again, unlike the pages availableto the seller, the actual bidder's names are available. At 152, it canbe seen that the event is closed and time remains in the review period,and to the right of that in the header frame, the fact that the eventhas ended and that the event is under review now appears at 150. Theseller Tee Pee Olives has the lowest gross line item total and net totalat lines 163 and 165. The business rules provide that the buyer hasuntil a certain time as shown at 150 to choose among the quotes.

FIG. 9B is the final seller quote view page, similar to the page at FIG.9A.

FIG. 10 is the buyer's quote view web page with award indicating boxes166 for the buyer to “click” on. The buyer may choose to award thesellers based on individual low quotes for individual items as indicatedby the check marks made at 166. Alternatively, the buyer may award thequoting participant having the lowest net total, or may make a selectionbased on other factors such as reputation, past experience, etc.

FIG. 10A is a view award page. It shows the awards from the olive buyingevent to which FIGS. 6-9 relate. The awarded sellers are shown at 167,delivery date at 168, price at 169 and volume at 170. Purchase Ordernumbers appear at 171.

In the award default page of FIG. 1B, the term of the olive salecontract that must be accepted by the seller are shown at 172, alongwith the purchaser's contract at 173. The time period for acceptance isset at 174.

FIG. 10C illustrates a seller award page. It lists the terms, deliverydate, price, etc. as established during the event and by the purchaser'saward. At the buttons 174 and 175, the seller may decline or accept.

FIG. 11A flowcharts the award process. The purchaser begins the awardprocess 177 at the close of an event. The purchaser evaluates the quotesat 178. The purchaser must identify the awarded seller at 179, or anerror is displayed at 180. At 182, the purchaser completes the awardinformation. At 184, the purchaser indicates that the awards arecomplete; otherwise, the purchaser returns to 179 to complete theawards. At 185, the seller reviews the award or awards to him or her.Acceptance or decline is made at 186. The purchaser is notified at 187if the award is declined, at which time purchaser again identifies anaward to another seller. At 188, the seller also notifies the purchaserif the award is accepted, and this completes this award process at 190.

The flowchart of FIGS. 11B and 11C illustrates how the system deals witha quote. When a quote is submitted via the quote/note page, at 195, itis checked at 196 to determine if it is in the correct form, i.e.numeric. If it is not, an error is displayed as indicated at 198, but ifit is, the quoting party at 200 is checked to see if that he or she is aparticipant. If the quoting party is not a participant, again an erroris displayed as indicated. If the quoting party is a participant, thenext determination that is made at 201 is whether the event remainsopen. If not, again an error is displayed. If the event is open,information concerning the event is checked at 203 to see if there is areserve price in place. If there is not, the routine proceeds to FIG.11B, where at 204 it is determined whether there is a quote increment inplace. However, if at 203 (FIG. 11B), it is determined that there is areserve price, then a determination is made at 206 whether this is aregular or reverse auction. If it is a regular auction, the quote iscompared to the reserve price at 207, and if it does not exceed thereserve price, an error is shown again as indicated at 198.

However, if the quote does exceed the reserve price, then the routinemoves to the quote increment determination 204 of FIG. 11C. Similarly,if at 203 it is determined that there is a reserve price and at 206 thatthis is a reverse auction, then at 209, the determination is madewhether the quote is more than the reserve price, in which case, anerror is displayed at 198. If the quote is less than the reserve price,the routine progresses to the quote increment determination at 204 inFIG. 11C.

If a quote increment is in place, as determined at 204, then the routinedetermines at 210 whether the quote is an event multiple of the quoteincrement. If not, an error is displayed as indicated at 212. If thequote is a multiple of the quote increment as required, then adetermination is made whether the particular item is market price basedat 213. Also, at 204, if it is determined that there is no quoteincrement, the program steps directly to the determination of whetherthe item is market price based.

If this is a market price based item, then the quote will have been maderelative to the market price. In other words, a quote of plus five centswould mean a quote five cents above the market price. When it isdetermined that the item is market price based at 213, then the quote isconverted to actual price, by addition of the quote to the market priceat 215. At this point, the quote table is updated at 216 and the buyer'squote view page illustrates the full price as calculated at 215. If theevent is determined not to be market price based at 213, then adetermination is made whether the quote is greater than zero at 218. Inother words, a quote less than zero is appropriate in a market pricebased event because that quote less than zero can be subtracted from themarket price to arrive at a positive number, but in other auctions, aquote less than zero is nonsensical, and again, the error is displayedat 212.

Having determined that the quote is appropriate at 216, and that updateof the item quote table, i.e. the quote view page, is appropriate, theroutine then proceeds to the sub-routine identified as item quotestrigger 219. This sub-routine is shown in the flow chart of FIG. 12.

In FIG. 12, the routine SP sub-add item quote is the routine describedjust above with respect of FIGS. 11A and 11B. The item quotes triggerroutine of FIG. 12 determines at 220 whether the amount field ischanging. If not, the routine of FIG. 12 is done. If at 220 it isdetermined that the amount field is being changed, then the particularseller's item low quote is modified at 222. At 224, it is determinedwhether the new quote is less than the previous quote. If it is, then adetermination is made at 226 whether an extension of the event is to bemade, because, for example, the new low quote is being made at a timeclose to the close of the event. Whether the new quote is higher orlower, the quote total is updated at 229. Next, data for the chart ofFIG. 17 is updated at 230 and the routine is complete.

In FIG. 13, a further routine is shown triggered by an update or the lowquote field at 235. At the decision block 237, a determination is madewhether the new low quote value exceeds the old low quote value or ifthe new low quote value equals zero (“NULL”). One of these two casescould occur where the previous low quote contributor has been disabled.If either of these is the case, then it is determined, based on the timeof occurrence, whether the event needs to be extended to giveparticipants an opportunity to respond as indicated at 238. In anyevent, at 240 a determination is made if the unit of measure (ounces,pounds, cases, quarts, etc.) quantity or if the quantities has beenupdated, both occurrences that require new totals to be calculated. Ifnot, the routine is done, but if so, on the basis of previous quotes,the item quote totals for the changed event item is recalculated at 241.

In FIG. 14, an event extension routine is flowcharted. Before an eventis extended for any of the reasons mentioned above or other reason, itis verified at 244 that the event is open, and enabled. It is determinedat 245 whether the event can be extended, which is to say that theallowable extensions have not been used up. If it cannot be extended,the event is done. If the event can be extended, the time remaining isdetermined at 246, and if this is determined, at 247 to be within thetime-to-closing threshold for extension, then the event is extended bythe extend time at 249, and any participants who have not quoted yet,i.e. prior to the first extension, are disabled at 251. If however, thetime remaining is not yet within the extension threshold determined at247 then the routine is done.

FIG. 15 illustrates a routine that may be called upon by a buyer bywhich a quote of additional funds or terms is submitted via the webpageat 255. These may be of the nature previously discussed, i.e. quantitydiscount or for advertising. The quote is determined to be numeric at257 or otherwise the error is displayed at 258. At 259, it is determinedwhether the quoter is a participant, otherwise again an error isdisplayed as indicated at 258. If the quoter is a participant, then at261, it is determined whether the event is still opened. If it is not,error is displayed. If it is open, it is determined whether quoting isallowed for this funds/terms at 262. If the answer is no, then the erroris displayed, but if the answer is yes, then it is determined whetherthe quote is above a minimum amount at 263. Though a minimum may be setas indicated at 263, still quoting may be allowed on this particularfunds/terms, which is why the decision block 262 is provided. If thequote is above the minimum amount as determined at 263, then it isaccepted, and the funds/terms quote table is updated at 264.

FIGS. 16 & 17 are quote view pages of a market price event. The marketprice is displayed with respect to the first two items at 270 in FIG. 16and at 271 in FIG. 17. The participating sellers are clearly visible tothe buyer in FIG. 16, but not to the seller in FIG. 17.

TABLE A Business rules for calculating the total quote for an eventitem: 1. If the “Quote Unit of Measure” equals the “Event Item Unit ofMeasure” “Item Total” = “Event Item Quantity”/”Quote Quantity” * “ItemQuote Amount” 2. If the “Quote Unit of Measure” does not equal the“Event Item Unit of Measure” a. If a ‘“Event Item Unit of Measure toQuote Unit of Measure Cross Reference” exists “Item Total” = ((“EventItem Quantity” * “Event Item Unit of Measure to Quote Unit of MeasureCross Reference Ratio”)/”Quote Quantity”) * “Item Quote Amount” b. If a“Unit of Measure Cross Reference” exists from “Event Item Unit ofMeasure” to “Pack Unit of Measure” and a “Unit of Measure CrossReference” exists from “Pack Unit of Measure” to “Quote Unit of Measure”Item Total ((“Event Item Quantity” * “Event Item Unit of Measure to PackUnit of Measure Cross Reference Ratio” * “Pack Unit of Measure to QuoteUnit of Measure Cross Reference, Ratio”)/”Quote Quantity”) * “Item QuoteAmount” c. If the “Event Item Unit of Measure” equals the “Package” andthe “Quote Unit of Measure” equals the “Tack Unit of Measure” “ItemTotal” = ((“Event Item Quantity” * “Pack Quantity”)/”Quote Quantity”) *“Item Quote Amount” d. If the “Event Item Unit of Measure” equals the“Package” and “Pack Unit of Measure to Quote Unit of Measure CrossReference” Exists “Item Total” = (((“Event Item Quantity” * “PackQuantity) * “Event Item Unit of Measure to Pack Unit of Measure CrossReference Ratio”) “Quote Quantity”) * “Item Quote Amount” “Gross EventValue” = Sum of the “Item Totals” for an event. Business rules forcalculating the event funds/terms item totals: 1. If the “Event OfferingType” is “Dollar” represented by the integer value “0” in the table. a.If the “Event Offering Quote Amount” is Null and the “Event OfferingMinimum Amount” is not null “Offering Item Total”= “Event OfferingMinimum Amount” b. If the “Event Offering Quote Amount” is greater thatthe “Event Offering Minimum Amount” “Offering Item Total” = “EventOffering Quote Amount” 2. If the “Event Offering Type” is “Percent”represented by the integer value “1” in the table a. If the “EventOffering Quote Amount” is Null and the “Event Offering Minimum Amount”is not null “Offering Item Total” = “Gross Event Value”/“Event OfferingAmount” b. If the “Event Offering Quote Amount” is greater that the“Event Offering Minimum Amount” “Offering Item Total” = “Gross EventValue”/“Event Offering Quote Amount “Total Funds/Term” = “Sum of the“Offering Item Totals” for an event “Net Event value” = “Gross EventValue” = “Total Offering

In Table A, there are listed in pseudo code business rules for an eventfor arriving at “net event value” such as appears at line 165 (therecalled “net total”) of FIG. 6. First the items totals as appear at thelines 154 of FIG. 6 are calculated using the rule 1 or 2 a, b, c or dunder “Business rules for calculating the total quote for an eventitem.” Under rule 1 if the quote is made in the same units of measure asthe event item is listed, the calculation is straightforward. The firstline 154 in FIG. 6 illustrates this. The event item unit of measurethere is the case. A quantity of 1,050 cases of jars of a given size ofparticular olives is listed. The quote, by the seller S1 for example, is$7.92 per case. In this case, the item total is 1,050 cases/1 casemultiplied by $7.92 to equal $3,316, which is the “Item Total.”

Where the quote is made in a unit of measure (“quote Unit of Measure”)other than the unit of measure listed in the event (“Event Item Unit ofMeasure”), if a cross reference or conversion figure exists between thetwo units of measure, then that is used in rule 2 a to arrive at theitem total. An example would be where the quote is in dollars per ounceand the event quantity is listed in pounds the “Event Item Unit ofMeasure to Quote Unit of Measure Cross Reference Ratio” would be 16.Similarly, rule 2 b applies where the quote is made in a unit of measureother than the event unit of measure and, instead of a direct conversionor cross reference as in rule 2 a, there exists a conversion figure fromevent item unit of measure to a pack unit of measure and anotherconversion figure for the pack unit of measure to the quote unit ofmeasure. For example, if the event quantity were listed in pounds, butthe quote was in ounces, and pounds per pack as well as ounces per packwere known, then the total item quote could be calculated.

Rule 2 c applies when the event lists the quantity of product by thepackage, but the quote unit of measure by which the seller quotes is thepack unit of mea sure or in other words, the units packaged together ina single package. For example, if the event item quantity is 100 casesand each case contains 12 cans, then the pack quantity is 12. The quotequantity, which is the quote unit of measure, is one can and the itemquote amount is the amount quote per can so for 100 cases times 12 canswhere the quote is $1.00 per can, the total quote for the item is$1,200.

Rule 2 d, immediately following, takes into account a further removedquote unit of measure. If the event item quantity is 100 cases of beerand the pack quantity is 100 pounds per case, if the bidder were toquote in price per ounce, then an event item unit of measure to packunit of measure cross reference ratio of 16 would be necessary to arriveat the item total. In this example, if the quote were of $1.00 perounce, the total quote or item total would be $160,000 or 100 casestimes 100 pounds per case times 16 ounces per pound times $1.00 perounce.

The “Business rules for calculating the event funds/terms item totals”relate to the non-price funds/terms listed at line 164 of FIG. 6 aspreviously discussed. The funds/terms may be in a dollar amount, such asdollars in freight allowance or advertising, or the funds/terms may be apercentage such as a percentage discount based on volume purchased. Fora dollar funds/terms, an integer is set to zero in a field 387 in atable 385 in FIG. 18B of the data model of FIG. 18, discussed below. Ifthe event funds/terms quote amount is null, which is to say no quotingof additional funds has been made, and if there is an event funds/termsminimum amount, then the funds/terms item total is the event funds/termsminimum amount. What this means is that if there is an event funds/termsminimum amount that has been set by the purchaser as a requirement, theparticipating seller has accepted this at the outset and consequently,this is a default value. If the event funds/terms quote amount isgreater than the event funds/terms minimum amount, however, the eventfunds/terms quote amount is the funds/terms item total rather than theevent funds/terms minimum amount.

If the event funds/terms type is of a percentage kind, then the field387 in the table 385 has an integer set to 1. Again, as in rule 2 a, ifthe event funds/terms quote amount is null and the event funds/termsminimum amount is not null, then the funds/terms item total is the grossevent value divided by the event funds/terms minimum amount (apercentage). Similarly, if the event funds/terms quote amount is greaterthan the event funds/terms minimum amount, then the funds/terms itemtotal is the gross event value divided by the percentage which is theevent funds/terms quote amount. The “gross” is the sum of the “ItemTotals” for the event, each as determined in the Business Rules forCalculating the Total quote for an Event Item described above. “TotalFunds/Terms” is the sum of the “Offering Item Totals” for an event underBusiness Rules for Calculating the Event Funds/Terms Item Totals.Finally the Net Event Value is the Gross Event Value minus the TotalFunds/Terms.

The data structure of the system is as schematically illustrated in thedata model of FIGS. 18 A-F. These figures join as indicated in FIG. 18.Table 350 defines the events. An integer 351 identifies an event. Theevent id serves as a primary key as indicated by the entry <pk>. By thiskey, the event may be called up and characteristics of the event setforth in the remainder of the fields 352 of the table 350 are retrieved.The entry “not null” indicates that the value in this field may not beblank, whereas the entry “null”, where present, indicates that the entrymay be blank.

Other tables in the data model take the event id from the table 350 asindicated by the unnumbered arrows labeled “event id=event id.”Information for the chart of FIG. 17 is located in the table 353. Thechart id is provided by an integer 354. The chart id is the primary keyfor this chart table 353. In the “event id” field, the entry<fk>indicates that the field “eventid” is a foreign key, i.e., the keyto another table. In fact, it is the primary key of the table 350 asjust discussed.

Event items, many of which have been discussed above, are set forth inthe table 356. An event identifier in the form of an integer 358 is theprimary key for this table. The entries <i1>, <i2> reference indicesavailable as a quick way to find associated data. Other event relateddata and cross references are found in tables 361-364.

In table 390, FIG. 18D, user's identifications are located. “Varchar”refers to variable characters of 10 to 255 characters in length used toidentify the user name, company, email address, etc. As described above,disablement, shown in field 392, is determined by the setting of asingle bit.

Participants in an event are identified in the table 395 and crossreferenced in table 396 of FIG. 18D. In table 400 in FIG. 18E, productidentity is contained. In table 405, units of measure (UOM) are kept andUOM cross references are kept in table 401.

Various categories assigned to e.g. events, users and products are keptin table 440, FIG. 18E, and are retrieved using tables 441-446. Timezone information is in table 447.

Phone information and cross references are in the tables 410, 411 and412 of FIG. 18F. Addresses, address cross references and other addressrelated information are contained in the tables 420-428 of FIG. 18C.Company identification is found in the table 430 of FIG. 118C. User idand company id are brought together in a table 431 of FIG. 18D.

The user id or GUID is in a sessions table 435 of FIG. 18D. Thenon-price items, called here “additional funds,” are found in table 385of FIG. 18B. The additional non-price funds that have been quote are intable 386, the history of additional fund quotes is found in the table387, and an additional fund award table is table 388. Item quotes appearin table 450, the history of item quotes in table 452, and the winningquote award in table 455.

Negotiated Event

The Negotiated Event is an electronic process for gathering andanalyzing proposals for a contract that has been sent out for bid. Theprocess is broken down into three components: Initializing Event, CreateProposal, and Analyze/Negotiate Proposals.

The first component, flowcharted at FIG. 19, is Initializing Event. Itis the process that starts the whole event cycle. Once the buyer hasdecided to place a contract out for bid, he or she logs on to thewebsite and creates an event as indicated at 601. In order to createthis event a buyer must fill out and select information about the event.At 602 the buyer begins by answering some parameter questions on theset-up page. These include event time duration, contract begin date,contract duration, estimated contract volume, discount & future rates ofmoney and item list indicator. The buyer proceeds by selecting items forthe event at 603 and if desired requests a sample to be delivered forqualification at 604. The buyer continues by selecting participants whohe or she would like to be involved in the proposal process at 605. Onceselected the last step is to click on a button to send out e-mailinvitations to the selected participants notifying them of this contractthat is up for bid at 606.

As shown in the flowchart in FIG. 19A, the second component, CreateProposal, is the supplier's process for responding to the contract thatis up for bid. If a supplier decides to participate that supplier clickson a link established on the e-mail he or she receives from the buyer,at 607. This automatically takes the supplier to the website loginscreen. Once logged in, the supplier has the ability to review thedetails about the event for this contract at 608. Upon this review, thesupplier must decide to accept or decline the event based on thesedetails. If at 609 the supplier declines, the supplier is not allowed tocontinue on at 610, but if at 608 he or she accepts, he or she is thensent on to the user terms and condition-screen, at 611. The supplieragain has the decision to accept 611 or decline 612 with the sameresults as the previous decision, but this time if the supplier acceptshe or she is taken into the proposal process.

The proposal begins at 613 by outlining the instructions on how toproceed through this process. Once this has been reviewed, the supplierenters into the proposal set-up screen at 614. Here the foundation isbuilt for the supplier's whole proposal. Required information about thefoundation is entered and submitted. This may include Proposed AnnualDollar Volume, Proposal Duration, Payment Terms and Annual SeasonalDistribution. The supplier is then faced with entering in cost andmovement for each individual item within the event at 615. (“Movement”is a term understood in the grocery industry to mean volume moved overtime, e.g. case per week or trucks per month.) Once completed, thesupplier has the option to add at 616 any additional funding (by eventlevel or item level) to round out their offering. The supplier has theability to change any aspect of this proposal until the deadline thatthe buyer has determined in the set up process, but once the deadlinehas passed changes only are allowed at the buyer's discretion.

As shown in the flowchart at FIG. 19B, the third component,Analyze/Negotiate Proposals, is an analytical review process for thebuyer that takes into account the relationship between time and money.From the buyer's perspective the buyer is able to see each proposal in aside by side comparison at 621. He or she is able to categorize anyadditional funds from the proposals at 622. This permits the buyer tocompare additional funds categories such as advertising contributions,volume discounts, etc. The buyer is able to run a “what if” scenario, orcontingency, analysis on any selected proposal at 623. The “what if”scenario is run by permitting the buyer to change one or more terms of aquote and then based upon the same analytical review, observing how thebuyer's results are effected. This flexibility for looking at theproposal along with the comparative analytics such as the calculation ofthe net present value, the item list cost differential, and additionalprofitability between the different proposals assists the buyer in hisor her decision making process on which proposal is a better option forthe buyer.

Net Present Value is determined using the formula:

PV=CF/((1+i)¹)

The net present value for a given cash flow is stated as the cash flowdivided by 1+interest rate (i) taken to the power of the number ofperiods being calculated (t).

The inputs for these various elements in the application are as follows:

(a) Cash Flow (CF)—This amount derives from the quotes being entered andthe shipment distribution filled out by the supplier.

(b) Interest Rate (i)—This is the “Net Present Value Discount Rate”entered into the Setup Page. Typically, this will be the return oninvestment or the interest rate on cash investments for the client.

(c) Number of Periods (t)—This is the number of periods for which thepayment will be made. In the present case, compounding occurs on amonthly basis, so this is the number of months the payment will be madefrom the beginning of the contract.

Item List Cost Differential is a means of weighting the extended amountto take into account the different volume of product the totals cannotbe readily compared. This calculation is to alleviate that issue. Thecalculation is as follows:

(Maximum Price−Supplier's Price/Maximum Price)×Supplier's Price×Quantity

The process could stop at the point of receiving the sellers quotes, butto add more flexibility to it the buyer is also empowered to negotiatewith each proposal as indicated at 625. By negotiating the buyer maypersuade a supplier to change certain aspects of the supplier'soffering. If the supplier agrees to these changes the buyer has theability to allow the supplier access to the supplier's proposal and oncethe change are made the buyer can close the access to the supplier. Atthis point the real time calculations are refreshed with the changes andthe buyer will see at 628 the net effect on the changed proposal. If thebuyer needs some leveraging to help in the negotiating process, thebuyer can choose an option that allows the supplier to view certainaspects of any other proposals as indicated at 626 and 627. After thesupplier reviews this information, then the buyer can again permitaccess for the supplier to modify his or her offering again. Once theproposals have been negotiated, the buyer can make a final review of theinformation. After this review the buyer has the ability to award thebest offer electronically over the e-mail while also sending out to theother participants a thank you for their participation letter, all at630. FIG. 20 is the administrator, buyer, power buyer's quote view pageof a negotiated event affording the ability to award at 810, 811 and812.

Competitive Branded Products Event

FIG. 21 is a quote view page for comparing quotes on different brands ofa product that a buyer seeks to purchase. Shampoo is the product in theexample. This page can be used, e.g., to compare promotional programspresented by two, three or more different manufacturers or distributors.The buyer's proposed program is first presented. Retail prices per unitare shown at fields 701. The buyer's gross margins are shown at 702. At703 the quantity cases of six bottles each is shown for each brand. Theproposed price (cost to buyer) that will produce the desired marginappears at 704.

Next the seller's or “supplier's” proposals or “quotes” are shown. Theseinclude price per case at 706, additional funds at 707, program price orcost to buyer at 708. The resultant gross margin is shown at 710.

The buyer's and seller's proposals are then compared. The difference inprice appears at 712 and percent difference at 713. As can be seen thebuyer's proposed price is less in each instance by the dollar amountshown in parentheses. The best supplier proposal from the buyer's pointof view is Brand Z as indicated at 715.

At 717 the supplier proposals are compared, using the Brand Z proposalas the basis for a normalized comparison. The difference in percentdifference between Brand X and Brand Z is shown at 718. The differencein percent difference between Brand Y and Brand Z is shown at 719.Corresponding dollar differences are at 720 and 721. FIGS. 21A and 22Bshow the quote view page for the competitive branded product event ofFIG. 21. The administrator, buyer, power buyer's page, FIG. 21A, showsall quotes as well as the comparative figures. The seller's page showsjust that seller's quotes plus the comparative figures.

This then has allowed a comparison between proposals for brandedproducts differing in price, differing in additional funds being offeredand in which the buyer has made his or her proposal in one set of units(retail price per unit) and the responding supplier participants havemade their proposal in another set of units (price per case).Nevertheless, the differences between sought-after gross margin andgross margin resultant from the suppliers proposals are made apparent.

Event Setup Options/Features

The following outline sets forth the many various setup options andfeatures that the power buyer or administrator can use in setting up anevent. Again, the olive buying event of FIGS. 6-9 is the example.Reference is made in FIGS. 22 and 23.

1. Ownership:

-   -   a. Event:        -   i. Event Name: The name one allocated for the event on the            initial create event page. This field, 501, is automatically            populated from what is entered on the initial create event            page. However, one may change the event name on the event            setup page.        -   ii. Event Type: Indicates, at 502, the type of event and            type of purchasing that the host user desires. There are two            classifications of events:            -   1. System, at 503, which can be:                -   a. Live—a binding event with some economic outcome,                -   b. Training—a non binding event with no economic                    outcome,                -   c. Template—an event that is not actually run but                    used as the template for setting up similar events.            -   2. Classification, at 504, which can be:                -   a. Contract,                -   b. Replenishment,                -   c. Spot (spot buy)                -   d. Price List, or                -   e. RFP (negotiated event).        -   iii. Parent Event: Identifies at 505, whether or not the            event was a copy of another event. If it was a copy, it will            list the event name that the current event was created from,            i.e. the “parent event.”        -   iv. Host Company Name: Refers, at 506, to the company that            is hosting the event. Is automatically populated from what            is entered on the create event page.    -   b. Host User:        -   i. Host User Company Name: This field will default to the            event host's company name at 507, but can be changed to            another company.        -   ii. Host User Name: Provides a drop down list at 508 to            select who will be the host user or sponsor of the event.        -   iii. Title: Lists the job title of the host user at 509. Is            automatically populated from the user's profile. If            incorrect, the user must update their profile to correct it.        -   iv. First Name: Lists the host user's first name. Is            automatically populated at 510 from the user's profile. If            incorrect, the user must update their profile to correct it.        -   v. Last Name: Lists the host user's last name. Is            automatically populated at 511 from the user's profile. If            incorrect, the user must update their profile to correct it.        -   vi. Department: Lists the department that the host user            works in. Is automatically populated at 512 from the user's            profile. If incorrect, an administrator from the company            that maintains the website and provides the system (the            “Company”) must update the profile to correct it.        -   vii. Phone Number: Lists the host user's phone number at            513. Is automatically populated from the user's profile. If            incorrect, the user must update their profile to correct it.        -   viii. Fax Number: Lists the host user's fax number at 514.            Is automatically populated from the user's profile. If            incorrect, the user must update their profile to correct it.        -   ix. Email: Lists the host user's email address. Is            automatically populated from the user's profile. If            incorrect, the user must update their profile to correct it.        -   x. Primary Administrating Company: Lists at 515 the host            user's primary administrating contact at the Company. Is            automatically populated from the user's profile. If a            primary Company contact docs not appear, one selects one's            contact from the drop down list.        -   xi. Secondary Company Contact: Lists at 518 the host user's            secondary Company contact. Is automatically populated from            the user's profile. If a secondary Company contact does not            appear, one may select one's contact from the drop down            list.    -   c. Setup:        -   i. Event Setup By: Indicates the user's name that set up the            event at 517. This field is automatically populated by the            system.        -   ii. Buyer Setup Event: A Yes/No flag that indicates at 518            whether or not a user with the ‘power buyer’ role set up the            event. This field is automatically populated by the system.

2. Setup:

-   -   a. Event Start:        -   i. Event Start Date: Indicates at 520 the date that the            event will start. Requires entry of a four-digit year, i.e.,            2001.        -   ii. Event Start Time: Indicates at 521 the time the event            will start.    -   b. Event End:        -   i. Event End Date: Indicates at 522 the date the event will            end. Requires entry of a four-digit year, i.e., 2001.        -   ii. Event End Time: indicates at 523 the time the event will            end. This will reflect the actual end time of the event            including extensions once the event has completed.    -   c. Contract:        -   i. Contract Start Date: Indicates the date that the contract            will begin at 524. Only applies to user event type            “Contract”.        -   ii. Contract End Date: Indicates the date that the contract            will end at 525. Only applies to user event type “Contract”.        -   iii. Reminder Date: Allows a user to indicate a date at 526            that the system will remind the user who setup the event            that the contract is ending and that the event will need to            be run again.    -   d. Delivery:        -   i. Delivery Start Date: Indicates at 527 the date that            deliveries will begin.        -   ii. Delivery End Date: Indicates at 528 the date that            deliveries will end.    -   e. Anticipated Award        -   i. Anticipated Award Date: Indicates at 529 the date that            you host user expects to announce the decision on the award            of business.    -   f. Event Status: Indicates the status of the event 530. Valid        values are: Enabled, Cancelled, Postponed, Awarded, Not Awarded.

3. RFP Setup (Referring to FIG. 23):

-   -   a. Contract Period Negotiable: Indicates at 535 whether the        buyer is willing to allow the suppliers the ability to input        their own proposal period for the contract.    -   b. Total Contract Value Negotiable: Indicates at 536 whether the        buyer is willing to allow the suppliers the ability to input        their own proposal values for the contract.    -   c. Listed Products are a subset of all items: Indicates at 537        whether the item list for this event will be a subset of all        items or a complete list.    -   d. Future Value Discount Rate (%): This figure, at 538, is the        percentage rate at which one's company places value on the        future rate of money.    -   e. Net Present Value Discount Rate (%): This figure, at 539, is        the percentage rate at which one's company places value on the        present value rate of money.    -   f. Compounding Period: Indicates, at 540, the compounding period        for the discount rates.    -   g. Average Gross Margin (%): This figure, at 541, is the average        gross margin percentage for the items or categories which the        event is based on.    -   h. Expected Inflation Rate (%): This figure, at 542, represents        the inflation rate that is expected to influence this list of        items or the category for the event.    -   i. Estimated total Value of Contract ($): This figure, at 543,        represents the estimated total of the contract value for the        event. This number will give the suppliers an idea of the value        for this contract.

4. Details:

-   -   a. Quote/Event Notes:        -   i. Allow Quote/Event Note: Indicates at 545 whether or not            one is willing to allow a supplier to place a single event            or item quote notation.        -   ii. View Event Note: Indicates at 546 whether or not one is            willing to allow event notes placed by suppliers to be            viewed by other suppliers (only applies in a full view            event).        -   iii. View Quote Note: Indicates at 547 whether or not one is            willing to allow notes placed by suppliers to be viewed by            other suppliers (only applies in a full view event).    -   b. Volumes:        -   i. Allow Proxy Volume: Allows at 548 a buyer to increase            volume based on targeted price points.        -   ii. Allow Items No Volumes: Allows at 549 a host user to            indicate whether or not one will be defining volumes for            items in the event.        -   iii. Allow Suppliers Quote Volumes: Allows at 550 a supplier            to indicate the volume they have available at the quoted            price point. This option cannot be used if the buyer is            indicating desired volumes.    -   c. Display:        -   i. Display Reserve Price: Indicates at 551 whether or not a            host user wants the reserve price to be displayed on the            view page for the suppliers to see.        -   ii. Display Industry Price: Indicates at 552 whether or not            the host user wants to display an industry price (such as            current USDA or Georgia Dock pricing) to the supplier for an            item(s).        -   iii. Display Weighted Quotes: Indicates at 553 who can view            weighted supplier quotes. Valid options are Buyer, Supplier            or Both. The buyer on the Participant Item page adjusts            quotes on a scale from 1 to 100%.        -   iv. Display Supplier Alias: Indicates at 554 whether or not            a host user wants to display a supplier alias on the view            page. Reduces the amount of characters on the view page in            the supplier column header and potentially allows for more            supplier data to be viewed on a single page.        -   v. Display Low Net Indicator: Indicates at 555 whether or            not a host user wants the lowest total net program value            highlighted on the view page.        -   vi. Allow Branded Product Event: Allows at 556 the quote            view page to display additional totals that enable a host            buyer to make decisions on products that are similar, but            different brands (i.e. shampoo)        -   vii. Display Branded Product Details to Suppliers: Displays            at 557 to suppliers on the quote view page additional totals            that enable a host buyer to make decisions on products that            are similar, but different brands (i.e. shampoo)    -   d. Quotes:        -   i. Quote Increment Type: Indicates at 558 what type of quote            increment you want the suppliers to place their quotes with.        -   ii. Allow Proxy Quote: Allows at 559 a host user to indicate            whether or not a supplier will allow the system place their            quotes on their behalf        -   iii. Allow Matching Quote: Indicates at 560 whether or not a            host user will allow a supplier's quote to be matched by            another participating supplier (this is for all quotes, not            including the low quote).        -   iv. Allow Matching Low Quote: Indicates at 561 whether or            not a buyer will allow the low quote for an item to be            matched by another participating supplier.        -   v. Max Matching Quotes: Allows at 562 a host user to            indicate the maximum number of matching quotes that you will            allow (is used in along with the allow matching quote            options above).        -   vi. Allow Non-Quote: Indicates at 563 whether or not a host            user will allow a supplier to stay in the event without            placing any quotes. Prevents a supplier from watching            pricing and not participating.        -   vii. Non-Quote Threshold: At 564 works in along with the            allow non-quote option and indicates the point in time            remaining on the event clock that the system will disable a            supplier if they have not placed a quote. For instance, if            it is a 15-minute event, and you one has indicated 5 in this            field, it means that with 5 minutes remaining on the clock            the system will automatically disable any supplier who has            not placed at least one quote. The supplier will not be able            to access the event again if they are disabled.        -   viii. Allow Quote Increase: Indicates at 565 whether or not            a buyer will allow suppliers to increase their current            quoted price.        -   ix. Quote Increase Threshold: Indicates at 566 how much time            after a supplier places quotes that the buyer will allow a            supplier to increase their quoted price.        -   x. Allow Quote Increase Extension: Indicates at 567 whether            or not a host user will allow a supplier to increase their            pricing during event extensions. If checked, then the Quote            Increase Threshold applies.        -   xi. Reset Quotes Prior Start: Allows at 568 the host user to            have an event span multiple days and the system will            automatically change the date to the following day at            midnight each night. In addition, the view page will appear            as if it is n new event.        -   xii. Start With Previous Quote: At 569 works in conjunction            with “Reset Quotes Prior Start” and allows the suppliers'            last quoted prices and notes to be retained on their quote            page so that they do not have to re-enter the information            the first time.    -   e. Event:        -   i. Event Display Type: Indicates at 570 the view in which            the suppliers will be able to watch the event. Valid values            are: Full, Low Quote Only, Ranking, Blind, Blind w/Color.        -   ii. Event Review Time: Indicates at 571 the amount of time            at the close of the event that a host user will want the            suppliers to stay available by phone, in the case of the            event needs to be re-opened for some reason.        -   iii. Supplier Award: Indicates at 572 whether one will award            the business to a single supplier or multiple suppliers.        -   iv. Items Parent Event: Indicates at 573 whether or not the            item “Pick List” will have only those items associated to            the parent event. This option does not apply if this event            was not a copy of another event.        -   v. Allow Group Buy: Indicates at 574 that the hosting buyer            wants to hold an event, which would allow multiple buying            organizations to participate in the consolidation of volumes            of the selected item(s) and indicate their own volume            requirements.        -   vi. Current Price Calc Method: If group buy is checked,            indicates at 575 how the current price field should be            calculated for each item in the event. Valid values are:            Lowest Current Price, Highest Current Price, or an Average            of all current prices entered for an item.        -   vii. Allow Extensions: Indicates at 531 whether or not the            event will extend if quotes are entered within the specified            threshold.        -   viii. Extension Threshold: Indicates at 532 the threshold or            at how much time remaining in the event that the event will            extend if a significant event happens in the specified            threshold. Significant events are: Low quote changes, Any            quote going down, An initial quote by a supplier on an item,            and any change to terms or funds. For example, if the low            quote changes within the last 1-minute remaining on the            clock, the event will extend.        -   ix. Extend Time: Indicates at 533 how long the event will            extend if a significant event occurs within the specified            threshold. This is a repetitive process and will continue            until no significant event occurs within the specified            threshold. For example, the event will extend 2 minutes if a            significant event occurs within the specified threshold.        -   x. Departments In Event: At 579 users in the selected            departments are invited to view this event. These            departments are based on the departments of the Host Buyer.

5. Categories: Indicates at 580 which category to which the products andparticipants will be sourced from.

6. Additional Information: At 581 allows a host user to indicate anyadditional information that is needed for the supplier to mostappropriately prepare for the event.

7. Payment Terms:

-   -   a. Allow Terms: Indicates at 582 whether or not a host user will        allow a supplier to quote early payment discount terms (i.e. 2%        10, net 30).    -   b. Minimum Terms: Indicates at 583 that the host user is        requiring minimum terms and what those required terms are. If        this field is populated, the terms will automatically be        calculated upon a supplier placing an initial quote.    -   c. Allow Terms Quote: At 584 allows suppliers to quote terms.    -   d. Allow Decrease Terms Quote: At 585 allows suppliers to        decrease their term amount.    -   e. Allow Users Add Funds: If present allows a host user to        indicate whether or not one is allowing a supplier to quote on        funding that one did not specifically request as a part of the        program.

8. Event Fees:

-   -   a. Fee Type: Indicates at 587 the type of fee that will be        applied to the event. Intesource staff completes this section.

9. New Event:

-   -   a. New Event Name: At 588 allows one to indicate the name one        wants the new event to be called when doing a copy.    -   b. New Company Name: At 589 allows a user to change the company        name when copying an existing event.    -   c. With Last Quotes: At 590 allows a user to copy an event that        has previously been quoted on and not copy the last quote per        item to the new event.    -   d. Without Last Quotes: At 591 allows one to copy an event that        has previously been quoted without retaining the last quotes per        item.

From the above outline the breadth of choices given a buyer or powerbuyer is apparent.

Whereas a specific, exemplary embodiment of the invention has beendescribed, it will be readily understood by one skilled in the art thatchanges may be made without departure from the spirit and scope of theinvention as set forth in tile claims appended or to be appended hereto.

1. A method of computer assisted procurement of products sought to bepurchased comprising: (a) providing an internet website, (b) affording aparticipating buyer the ability to list on a page at the website a listof items requiring recurrent replenishment, (c) qualifying participatingsellers to quote on items in the list of items, (d) affording qualifiedparticipating sellers the ability to award one or more sales to one ofsaid qualified participating sellers based on that seller's quote on anitem or items on the list, and (e) enabling the qualified participatingsellers to quote on a recurring basis on items on the list absent theneed for requalification.
 2. The method according to claim 1, whereinstep (e) includes scheduling recurrent events during which quotes onlisted items can be received.
 3. The method according to claim 1 whereinstep (e) includes maintaining a price list of items on the listcontinuously open for receipt of quotes on listed items.